QUESTION 3 (35 MARKS) 1. Mr Moon is a veteran astronaut who earns his living running a business that buys and sells space memorabilia. He engages in three transactions. (a) (b) () @ Mr Moon owns a number of spacesuits worn by actual NASA astronauts, which he hires out for special events and to filmmakers. During the night, a disgruntled employee, who is owed several weeks' worth of salary, takes the spacesuits and hides them in his garage. The next evening, a thief takes the spacesuits from the garage and sells them to Fabric Ltd. Fabric Ltd is owed money by Mr Moon. Advise on whether Fabric Ltd can create a general common law lien over the spacesuits. (10 marks) Mr Moon also has a collection of rare wristwatches used by actual NASA astronauts. He keeps them stored in a safe within a bank vault, which he can access during the bank's opening hours. In order to secure a loan of $100,000 from Mr E, Mr Moon pledges his collection of wristwatches and passes Mr E the combination code for the safe in which they are stored. He tells Mr E he is \"welcome to access the watches if convenient with him.\" Later, but before Mr Moon repays the debt, Mr E decides to sell the wristwatches to a third party for $120,000. Advise both on whether Mr Moon legally pledged the wristwatches and whether he can recover the surplus proceeds of sale. (10 marks) What is the current approach to distinguishing between a fixed and floating charge? Do you agree with the current approach? (7 marks) Mr Moon wishes to purchase a one-of-a-kind space laser gun prototype through an auction. To do this he requires financing. He enters into a loan agreement with MarsBank Ltd for a loan of $100,000. The terms state that MarsBank Ltd has a floating charge over all of Mr Moon's book debts. Additionally, the agreement contains an automatic crystallisation clause should Mr Moon seek to provide the same book debts as security for a loan with a third party. Mr Moon wins the auction, but, unfortunately, his winning bid was $300,000. To pay for the shortfall, he enters into a loan agreement with VenusBank Ltd for a loan of $200,000. The terms state that VenusBank Ltd has a fixed charge over all of Mr Moon's book debts. Mr Moon must pay all receipts of book debts to VenusBank Ltd and is completely restricted from using his account until the debt is repaid. Advise on which charge has priority. Assume all charges are registered